Investors flock to safe-haven assets as US-Israel-Iran conflict escalates
Gold prices surged to their highest in over four weeks on Tuesday, marking a fifth consecutive session of gains, as investors sought refuge in safe-haven assets amid escalating Middle East tensions.
Spot gold rose 1% to $5,377.21 per ounce in early Asian trading, extending Monday’s gains triggered by weekend airstrikes. US gold futures for April delivery climbed 1.5% to $5,391.90. Analysts attributed the rally to rising geopolitical uncertainty, with the conflict’s scope and duration remaining unpredictable.
Tensions intensified after Iranian state media reported a senior Islamic Revolutionary Guard Corps official claiming the Strait of Hormuz had been closed, warning that vessels attempting transit could face military action. The strategic waterway channels around 20% of global oil shipments, and any sustained disruption could tighten crude markets and boost inflationary pressures.
Despite a US dollar near a five-week high, both gold and the greenback benefited from safe-haven demand. Rising energy costs and potential shipping disruptions have heightened inflation concerns, further supporting precious metals.
Other metals mirrored gold’s rally, with silver climbing 1.4% to $90.67 an ounce, platinum up 0.6% at $2,316.50, and palladium adding 1.6% to $1,795.08.
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